A Real Estate agent is a professional who must have a license in order to transact in the real estate market. They are responsible for connecting buyers and sellers and act as their representatives in real estate companies. Real estate agents receive their monetary income through commissions, which is calculated based on a percentage of the purchase or rental price of the property. Their income depends on the ability to close real estate deals.
In general, a real estate agent must work or be affiliated with a real estate broker (it can be an individual or a firm), since the latter have more experience in the business and also have a license to a higher degree.
What Does a Real Estate Agent Do?
Real estate agents generally specialize in commercial or residential real estate. They perform different tasks, depending on whether they work for the buyer or the seller. Agents operating for the seller, also known as listing agents, advise clients to set the property price and prepare for sale. They also often give advice on how to increase the price of the property or to encourage quick offers. Agents who operate for sellers market the property through listing services, social media, and real estate ads.
Agents working for buyers look for properties that match the available price and the buyer’s list of requirements. These agents may contain past sales data on similar properties to help buyers have a superior and fair offer.
Agents act as intermediaries for the main parties (sellers and buyers), offers and counter offers. Once a property is sold or rented, agents from both sides help their clients with the documentation, communicating messages, advising with the cleaning of the property and the move, until the moment of the contract closing.
Agents must disclose their representation to buyers and sellers as much as in the event of a conflict of interest. It is relevant for the parties to be clear on whether a real estate agent represents the buyer, the seller or both parties, as the agent’s loyalty could affect details of the contamination, including the final price. The laws of each state regulate whether an agent can represent the parties in a real estate representation, which is technically known as a dual agency.
In most countries, people are asked to graduate from a real estate agent school for industry professionals. After passing the exam in the real estate agent course you will also need real estate agent training. Besides, real estate agent requirements differs from country to country: some also asks a post licensure, continuing education and ongoing professional development.
How Much Does a Real Estate Agent Earn?
Before becoming a real estate agent you should know that they are generally paid by commission, which is a percentage of the sale or rental price of the property. The higher the sale price of the house, the more money an agent earns. However, with online property listings that allow consumers to do much of the shopping on their own, the traditional payment structure has undergone some changes.
Some brokerage houses charge a lower commission for more expensive houses, and others run the business for a flat rate that is much smaller than a regular commission. Other companies offer an employment rate pricing organization that allows sellers to pay for certain parts of the sale progress, such as placing the property with a multiple listing service (MLS).
If you are wondering which are the steps to becoming a real estate agent, you should click here to find out 3 simple ways for starting your career as a Real Estate Agent.
How to be a real estate agent? How to become a real estate broker? Differences between them
The exact definitions and distinctions between an agent and a broker vary by state. Generally anyone who gets a real estate agent license can be called a real estate agent, who is basically a qualified seller to help clients buy or sell / rent a property.
Real estate brokers, on the other hand, have training and higher education than real estate agents. States also often require that they have experience as an active realtor. Brokers handle the technical aspects of real estate transactions. For example, a client signs a contract with a real estate broker, not a real estate agent.
Brokers generally have a higher certification that authorizes them to handle other legal and financial aspects of a deal such as having the security deposit and establishing the account to deposit that money.
Real estate brokers generally own their own company or have acquired a franchise. They can work independently, but they must obtain another higher level license if they want to hire real estate agents or other real estate brokers to work with or for them.
Furthermore, as we mentioned before, a real estate agent cannot work alone, but must operate through a real estate broker. However, there are states that have exceptions and require that all real estate professionals be licensed as a real estate broker. Anyway, in those cases the agents work for the brokers and then divide their commissions.
The App that Can Simplify and Enhance your Career as a Real Estate Agent
If you decide to shape your career as a real estate agent, you should meet “Aidy”, a real estate software application created specifically for real estate agents. Aidy keeps you informed of all your duties as a real estate manager 24 hours a day, 7 days a week. It will help you find the most likely buyers and sellers, promote the properties on social media and allow you to make more profit by helping you sell more properties.
A real estate agent who has Aidy on their mobile or desktop device does not need other client registration software, real estate tracking program, or real estate CRM. Thanks to Aidy – offering a free trial period – real estate consultants spend less time trying to establish quality communication with potential clients.